Daimler invest €500M in Hamburg plant for e-mobility components

Daimler is comprehensively modernizing the Mercedes-Benz Hamburg plant and is expanding its product portfolio to include key components for electric driving. This is part of the transformation plan that the company has agreed on with the works council. With the agreement in Hamburg, Mercedes-Benz Cars has now successfully set out the transformation plans for all plants in Germany.

“The completion of the transformation plans is an important milestone in our growth strategy. We put our vehicle and powertrain plants on a future-oriented and sustainable foundation and strengthen their international competitiveness. Thus, we increase the flexibility and efficiency in our global production network. For that purpose we are investing several billion euros”, said Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Production and Supply Chain Management.

The transformation plan ensures the competitiveness of the site and keeps employment stable. In addition, the agreement provides for a highly flexible production through modern shift models.

“With the investment of 500 million euros, we will develop the Hamburg plant into a high-tech site producing drive components for electric mobility. This is a proof for the high qualification and outstanding performance of our employees. The transformation plan is a future-oriented achievement for the plant that offers employees new opportunities”, says Wolfgang Lenz, Site Manager Mercedes-Benz plant Hamburg. Company and works council have agreed on an increase in training places, resulting in 26 positions each year for the years 2017 and 2018. Furthermore, ten new permanent jobs will be created and filled this year.

“For the employees, the now agreed transformation plan is a clear, positive signal: The plant takes part in the company’s growth strategy and profits from future prospects of the industry. Our central goal in the negotiations was the assurance of future products for the site. The increase in the number of training places and permanent positions indicate that the company continues to count on the plant in Hamburg”, says Jörg Thiemer, Chairman of the Works Council Mercedes-Benz plant Hamburg.

The production of axles and axle components, lightweight structural components and steering columns, along with exhaust technology, will remain an integral part of the plant. The agreement provides the Mercedes-Benz plant Hamburg with extra capacity for axles and axle components. The third generation of steering columns will also be produced in Hamburg. This means that every Mercedes-Benz vehicle will continue to include a part from Hamburg. With the production of the cockpit crossmember for the C- and E-Class, lightweight structural components will continue to be produced here.

The innovative components, manufactured using environmentally responsible production technologies, make a significant contribution to reducing vehicles’ CO2 emissions.

“With the transformation plan for the Hamburg plant we are continuing the successful strategic realignment of our German powertrain plants. We have defined a sustainable product portfolio and measures to increase efficiency and flexibility for all plants, leaving us extremely well prepared to face the future”, says Frank Deiß, Head of Production Powertrain Mercedes-Benz Cars and Site Manager Mercedes-Benz plant Untertürkheim.

Daimler recently announced a 500 million Euros investment in a new battery factory in Germany. The new battery factory will produce lithium-ion battery packs for hybrid and electric vehicles for Mercedes-Benz and smart brands.

Daimler has also said it is open to the idea of creating an alliance between Germany's premium carmakers to manufacture next-generation batteries.